Company Overview - Texas Capital Bancshares, Inc. is a full-service financial services firm headquartered in Dallas, with offices in Austin, Houston, San Antonio, and Fort Worth, providing customized solutions to businesses, entrepreneurs, and individual customers [5][6] - The company is a member of the Russell 2000 Index and the S&P MidCap 400, established in 1998, and has built a network of clients across the country [5] Leadership Appointment - Brett Fenn has been appointed as Managing Director, Head of Business Banking, effective immediately, leading a team across five cities in Texas [6][7] - Fenn's role will focus on cultivating strong client relationships and driving growth within the Business Banking division, reporting directly to Jay Clingman, Managing Director, Head of Commercial Banking [6][7] Experience and Background - Fenn joined Texas Capital in 2022 as a Managing Director in the Investment Bank, specializing in Interest Rate Derivatives Structuring and Marketing, providing strategic guidance on macroeconomic trends [2][10] - He has over 17 years of experience at J.P. Morgan, where he held various roles, including Executive Director of Oil & Gas Corporate Banking, advising on capital markets and investment banking transactions [8][10] - Fenn holds a Bachelor of Business Administration in finance from Baylor University and an MBA with a concentration in investments from Southern Methodist University [4]

DALLAS, June 26, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ:TCBI), the parent company of Texas Capital, today announced it will open a new financial center in Southlake, Texas next month. It will be the first location of its kind for the firm, transforming its retail strategy to meet the evolving needs of the clients within the markets it serves across Texas. "At Texas Capital, our goal is to deliver high touch, personalized service while pairing it with the right products and solutions ...

Texas Capital Bancshares, Inc.'s (TCBI) increase in net interest income (NII) and steady loan growth will continue to support its financials. Given the company's strong liquidity position, its capital distribution activities seem sustainable. However, an elevated expense base and deteriorating asset quality are a major concern. Texas Capital is focused on growing organically. An elevated level of investment banking, trading income and higher NII drove revenues to witness a compound annual growth rate (CAGR) ...

Oman joins Texas Capital from PricewaterhouseCoopers (PwC) where he served as a Managing Director in the firm's financial risk practice. Prior to PwC, he led strategic execution in market risk, global markets infrastructure, credit risk review, global wealth and investment management, emerging markets risk and counterparty risk for firms in New York and London, including Bank of New York Mellon, Credit Suisse AG, Bank of America Merrill Lynch and UBS, among others. "David's extensive professional experience ...

DALLAS, May 21, 2024 (GLOBE NEWSWIRE) -- Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital, today announced the appointment of David Oman to serve as the firm's Chief Risk Officer (CRO), effective June 10, 2024. Oman will report directly to Texas Capital's President & Chief Executive Officer Rob C. Holmes and serve as a member of the firm's Operating Committee. As previously announced, Tim Storms, Texas Capital's current CRO will retire next month and continue to serve as an ...

Portfolio Concentrations (1) March 31, 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024. Table of Contents | --- | --- | --- | --- | --- | --- | |----------------------------|-------|------------------------|----------------------------------------------------------------------|--------------------------------------|-----------------------------------------| | (dollars in thousands) | | 2024 \nNet Cha ...

Texas Capital Bancshares, Inc. (NASDAQ:TCBI) Q1 2024 Earnings Conference Call April 18, 2024 9:00 AM ET Company Participants Jocelyn Kukulka - Head of IR Rob Holmes - President and CEO Matt Scurlock - CFO Conference Call Participants Brett Rabatin - Hovde Group Ben Gerlinger - Citi Matt Olney - Stephens Woody Lay - KBW Jon Arfstrom - RBC Operator Welcome to the Texas Capital Bancshares, Inc. Q1 Conference Call. My name is Carla, and I will be coordinating your call today. [Operator Instructions] I will now ...

Exhibit 99.1 INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com MEDIA CONTACT Julia Monter, 469.399.8425 julia.monter@texascapitalbank.com TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2024 RESULTS First quarter 2024 net income of $26.1 million and net income available to common stockholders of $21.8 million, or $0.46 per diluted share First quarter 2024 growth in loans held for investment of 2.4% and in total deposits of 7.1% Capital ratios continue to be strong, i ...

Regulatory Compliance - The Company is subject to regulatory capital requirements that may change, potentially requiring an increase in capital allocation to assets held by the Bank[61]. - The Company is required to comply with the Community Reinvestment Act (CRA), which mandates meeting the credit needs of market areas, and is subject to periodic examinations[78]. - The revised CRA regulations, effective January 1, 2026, will alter compliance assessment methodologies, potentially increasing challenges for the Bank to achieve satisfactory ratings[79]. - The Company has invested significant resources to comply with anti-money laundering laws and regulations, including the Bank Secrecy Act and the Anti-Money Laundering Act of 2020[80][82]. - The Company must adhere to the Office of Foreign Assets Control (OFAC) regulations, which require blocking transactions with prohibited parties, to avoid legal and reputational risks[83]. - Federal banking agencies have broad authority to enforce operational and managerial standards, and failure to comply may result in enforcement actions against the Bank[85]. Capital and Liquidity - The capital categories for insured depository institutions include "well capitalized" (≥10% total risk-based capital ratio), "adequately capitalized" (≥8%), "undercapitalized" (<8%), "significantly undercapitalized" (<6%), and "critically undercapitalized" (tangible equity to total assets ≤2%)[64]. - The liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) are designed to ensure adequate liquidity and promote long-term funding, although they are not currently applicable to the Company[70][71]. - The Bank's deposits are insured up to $250,000 per depositor, per account ownership category, per bank, as per FDIC regulations[91]. - The FDIC has established a plan to restore the Deposit Insurance Fund (DIF) reserve ratio to at least 1.35% by September 30, 2028, with an amended restoration plan increasing the initial base deposit insurance assessment rate by 2 basis points starting in 2023[92]. Market Risk Management - The Company uses Value-at-Risk (VaR) to measure market risk, with no significant market risk exposure reported as of December 31, 2023[269]. - The Company utilizes derivative transactions to manage interest rate, prepayment, credit, price, and foreign currency fluctuations[278]. - Derivative contracts are designated as fair value hedges, cash flow hedges, or net investment hedges, depending on the nature of the transaction[279]. - The Company’s interest rate risk exposure model incorporates updated assumptions regarding deposit behaviors and loan prepayment in response to market rate changes[277]. - The simulations used to manage market risk are based on numerous assumptions, which are inherently uncertain and may lead to actual results differing from simulated results[277]. - Interest rate derivative contracts are employed to support customer-related positions and manage asset/liability risk[280]. Interest Rate Sensitivity - As of December 31, 2023, the Company's total interest-sensitive assets amount to $27,650,472,000, while total interest-sensitive liabilities are $17,402,710,000, resulting in a positive gap of $6,546,686,000[272]. - The Company has a cumulative gap of $10,247,762,000 as of December 31, 2023, indicating a strong asset sensitivity position[272]. - As of December 31, 2023, a 200 basis point increase in interest rates is projected to result in a 3.2% annualized hypothetical change in net interest income, compared to 14.5% in 2022[277]. - A 100 basis point increase in interest rates is expected to lead to a 1.6% change in net interest income for 2023, down from 8.0% in 2022[277]. - The model indicates that a 100 basis point decrease in interest rates would result in a (4.4)% change in net interest income, while a 200 basis point decrease would lead to a (9.1)% change[277]. - The Company will continue to evaluate interest rate scenarios as they change, with a focus on the impact of both increases and decreases in rates[276]. Regulatory Impact - The Volcker Rule has not materially affected the Company's operations, although future interpretations may pose risks[94]. - The Dodd-Frank Act limits interchange fees for electronic debit transactions to 21 cents plus 0.05% of the transaction value, with a proposed reduction in maximum interchange fees for large debit card issuers[95]. - The Federal Reserve, OCC, and FDIC issued guidance in 2010 to ensure that incentive compensation policies do not encourage excessive risk-taking, with rules proposed in 2016 still pending implementation[90]. - The FDIC approved a special assessment in November 2023 to recover losses associated with bank failures, to be collected at an annual rate of approximately 13.4 basis points over eight quarterly assessment periods starting in 2024[93].

Financial Data and Key Metrics Changes - The firm reported a full-year adjusted PPNR growth of 14% to $338 million, with fee revenue growth of 60% and EPS growth of 23% [7][37][68] - Total adjusted revenue increased by $99 million or 10% for the full year, benefiting from a 60% increase in noninterest income [67] - The year-end CET1 ratio was 12.6%, ranking fourth among the largest banks in the country, while tangible common equity to tangible assets reached an all-time high of 10.2% [24][82] Business Line Data and Key Metrics Changes - Treasury product fees were $7.8 million in the quarter, up 10% year-over-year, reflecting the addition of primary banking relationships [14] - Investment banking and trading income decreased to $10.7 million, down from record levels in the previous four quarters [15] - Wealth management income decreased by 7% during the year due to client preference for managed liquidity options [65] Market Data and Key Metrics Changes - The firm experienced a 23% increase in volumes flowing through its payment system over the last two years, contributing to an 11% improvement in gross payment revenues in 2023 [26] - Average mortgage finance loans decreased by $751 million or 16% in the quarter, reflecting seasonal trends in home buying [71] - Ending period mortgage finance noninterest-bearing deposit balances decreased by $1.7 billion quarter-over-quarter due to seasonal tax payments [43] Company Strategy and Development Direction - The company is focused on enhancing the resiliency of its balance sheet and business model over near-term growth, with significant investments made to support scalable businesses [25] - The strategy includes deepening client relationships rather than expanding market share, with a focus on improving service models [10] - The firm aims to leverage its cash management platform to drive deeper client relationships and outperformance relative to the industry [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the mortgage finance industry is facing its most challenging operating environment in the last 15 years, but expects a recovery in origination volumes as market conditions improve [28][40] - The firm anticipates mid-single-digit growth in revenue for 2024, supported by continued execution across income areas and a slowing of capital recycling efforts [83] - Management remains conservative in its outlook, elevating annual provision expense guidance to 50 basis points of LHI, excluding mortgage finance [85] Other Important Information - The firm repurchased approximately 3.7% of total shares outstanding during the year, at a weighted average price equal to the prior month tangible book value [31][51] - The total allowance for credit loss increased to $296 million or 1.46% of total LHI at quarter end, reflecting anticipated economic challenges [48] Q&A Session Summary Question: Can you provide more details on the revenue guidance and deposit betas? - Management indicated that deposit betas are expected to be limited initially but will build over time as the Fed cuts rates, with a focus on improving productivity in the expense base [62][88] Question: What is the target state composition of the funding base? - Management stated that while they will never hit a target state composition, significant progress has been made in improving the quality of deposits [100] Question: How do you expect mortgage finance loans and deposits to track in 2024? - Management expects average mortgage finance loans to pick up in Q2 and Q3, with a self-funding ratio normalizing back to around 120% [132]